Annual Compliances for One Person Company
As the name suggests, an OPC or One Person Company is a business format where a single person owns the company. There is no more than a single director or more than a single member. Being a single-handled company, an OPC is easy to manage. If you are an entrepreneur who seeks singular success, you can register as an OPC in India.
Formal definition of an OPC
The definition of a One Person Company is explained in Sub Section 62 of section 3 of the Companies Act, 2013, which states: "One Person Company means a company which features only one Member." Therefore, unlike a Private Limited Company, this single company registration of a single owner doesn't need a minimum of two directors. However, like a private limited company, the online One Person Company Registration in India does provide you with Limited Liability.
Types of OPCs
OPC Formation can be done as an:
![Types of opc there are three types of OPC : OPC limited with Guarantee ,OPC limited with Share Capital,and OPC unlimited company](https://www.registrationwala.com/storage/app/public/services/June2023/Types of OPCs.png)
- OPC limited with Guarantee
- OPC limited with Share Capital
- OPC unlimited company
Why choose the One Person Company model for registration?
After the online registration of a One Person Company in India, there are the following benefits that can be enjoyed:
![Benefits of OPC Model the benefits of opc model are limited liablity , separate legal entity, and fewer compliances](https://www.registrationwala.com/storage/app/public/services/June2023/Benefits of OPC model.png)
Limited Liability: As the business entity is a company, the entrepreneurs have their assets protected from the company's failings.
Separate Legal Entity: An OPC Company is a separate legal entity from the owner.
Fewer Compliances: The number of compliances for a One Person Company is less.
Filing Annual Compliance of an OPC
Being compliant with the rules that have been set up by the companies act is important for you if you want to make sure that your standing as a One Person company is a good one. To that end, you need to file some compliance on an annual basis.
If you are not compliant, not only will our company lose legal standing, but it will also be penalized. These penalties are of varying natures. At the same time, you might want to defer the compliances because of the initial relaxed nature of the penalties. As time goes by, and if you are still not compliant, the intensity of the penalties will increase.